The Russian Perfumes-Cosmetics Market Has a Sufficient Potential

09 Dec 2009 • by Natalie Aster

Under crisis it has been a sharp recession of exchange costs of the largest perfumes-cosmetics concerns within growth of 7-20% in various segments of the Russian perfumes-cosmetics market since September, 2008. The given situation resulted to a further retail trade growth braking that basically had an extensive character. However, the rates growth at the perfumes-cosmetics market makes value at level of 9-10%, and has a sufficient potential for further development, according Information Agency CredInform North-West.

As to market structure the greatest share is occupied with a segment of cosmetics and products of personal hygiene which exceeds 83% of a total market. 5 largest foreign manufacturers stand out with over 33% share of total market. It's worth saying, that the perfumes-cosmetics market is also characterized with high import deliveries.

In a segment of cosmetics, an essential course of events are expected at a legislative level. So, trading enterprises might sustain losses due to the draft law «About Trade». At present view, the document forbids the large trading network enterprises to open new representations in small settlements.

In the beginning of 2010, the 43rd amendment to the rules, developed by the International Fragrance Association, will come into force. It provides an interdiction of some components in the chemical formula of perfumes. Besides, in case of system cancellation of before-market products safety control and notifying order input of products placing in the market an annual market growth in value at level about 10-15% is expected in the near-term outlook.

Thus, according to experts, the perfumes-cosmetics market development in Russia will be mainly influence by the reform of a technical regulation system.